The analysis of Chipotle’s annual report and its current position in the market outlines the existence of several opportunities for market growth. First of all, from SPACE analysis and the investigation of the market, it is possible to emphasize the high level of rivalry and intense competition (Chipotle, 2019). For this reason, the first recommended strategy is the continuous upgrade concerning brand reputation, location, service, and quality (Rothaermel, 2016).
It means that Chipotle can generate a competitive advantage by appealing to its apparent strengths, such as tasty and high-quality food, and empowering its position in the market. It will also fit with the current position that remains conservative, and, at the same time, will contribute to the further development and growth of the brand.
Another possible strategy is international expansion. The report shows that at the moment, Chipotle has 2,452 restaurants in the USA and few locations in other regions of the world (Chipotle, 2019). Accepting the existing growth potential of the brand and ease of entry to the new market, further expansion should be viewed as a beneficial option (Kotler & Keller, 2015).
It will provide the brand with new clients and guarantee a stable income in revenue (Stevenson, 2017). Moreover, the current financial position of the firm means that it has resources needed to support the development of overseas business. For this reason, the given strategy can help to acquire additional competitive advantage and move forward.
Altogether, the current state of Chipotle offers several strategies for its possible rise. The brand can benefit from the upgrade impacted by the competitive environment peculiar to the sphere and from the entry to new markets located in different regions. The firm SPACE analysis proves the relevance and feasibility of the offered prospects and opportunities for further rise.
References
Chipotle. (2019). Annual report and proxy statement. Annual Reports. Web.
Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Pearson.
Rothaermel, F. (2016). Strategic management (3rd ed.). McGraw-Hill Education
Stevenson, W. (2017). Operations management (13th ed.). McGraw-Hill Education.